In Wake of Slumping Car Sales, Ford Will Idle 5 North American Plants: What? No Hurricane Bounce?

As initially reported by the Census Department, motor vehicle sales were 1.2% in July following a 0.9% gain in June. At the time, I commented, “This is unbelievably bizarre in the face of actual auto sales reports.”

Ford Motor Co said on Tuesday it plans to idle five North American vehicle assembly plants for a total of 10 weeks to reduce inventories of slow-selling models.

The plants affected include three assembly plants in the United States and two in Mexico, the company said in a statement. The vehicle models include the Ford Fusion and Lincoln MKZ midsize sedans, the Ford Focus compact car, the Lincoln Continental and Ford Mustang, Ford Fiesta and the Ford Transit van.

The factories involved employ more than 15,000 people, according to Ford’s website. The company did not say how many of those workers would face temporary layoffs.

Ford Inventory Numbers

111 days’ supply of unsold Mustangs

87 days’ supply of Fusions

103 days’ supply of Transit vans

162 days’ supply of Lincoln Continentals

Automakers aim for 65 to 70 days of inventory of most models.

Note that production cuts are on the way despite the expected bounce in sales due to hurricane damage.

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28 thoughts on “In Wake of Slumping Car Sales, Ford Will Idle 5 North American Plants: What? No Hurricane Bounce?”

Ten long years of QE and ZIRP are working!!!! The subprime contagion remains well contained!!!! And $80K per year colleges have trained millions with marketable skills like safe spaces and microagressions.

There’s not much left of the “industrial complex.” Like anyone else naive enough to bother attempting to do something productive in the Leech Age; industry has been robbed, milked, regulated and stripped by the same leeches in the FIRE and government/legal complexes as everyone else. Until there is precious little left of it. And what little is left, is generally uncompetitive and dependent on begging and felleting the leeches for handouts.

Arms makers and others in close connection with the military are doing OK, as they have less competitive exposure. And because the rest of the world have even more retarded gun laws than the US does. Outside of those sectors, which exist somewhere between partially and completely behind de facto protective walls, “we” may as well be Mexico or The Philippines. Or, at best, somewhere like Greece.

On the other hand, why worry about US productivity when Congress is much more interested in the next war. Seems AIPAC and their benefactor are turning their attention to Lebanon for their water resources. Their narrative is that Hamas is building bombs there so Israel has neen buzzing them with low altitude fighter jet sweeps trying to instigate the initial battle. They already annexed part of Syrian oil rich land adjacent to the Golan… just enough that nobody complains.

Honestly, its a bit early to talk about hurricane rebound. Maybe October will be a better indicator. However, lets be clear Houston and bits of Florida are important but not that important. When you are sitting on over 100 days of inventories (wow transit vans too!) then its more than time to slow production

Yep, my son now has my 2008 RAV4 that still runs great. I have a new 2017 RAV4 and my wife traded in our 2004 Toyota Sienna van for a low mileage 2015 Toyota Highlander. While I will say Toyota has lost some points for quality the last couple of years, they along with Honda, are light years ahead of any other carmaker.

And so, the ongoing incremental economic implosion continues, with the majority of the population woefully unprepared. I wonder if the people will awaken when a credit event results in unstocked grocery shelves and closed gas stations

Or, more importantly, awaken to the fact a “credit event” (or a million such “events”) is exactly the only thing that will prevent grocery shelves and gas stations where they live, from becoming gradually ever more empty.

Why would anybody buy an American car? They are just huge pressed metal, totally overpriced and junk. Anyhow, I am willing to be a proud American and will take two new Corvettes off the lot for the price of one. Deal?

I bought a 1994 chevy G20 in 2001 for cash ($10,000.) it runs like a dream. I take really good care of it. so Ive had it 16 yrs (no car pmt) and its only got 166,000 mi! not even broken into yet. I LOVE MY CHEVY! its my third chevy. BTW the paint jb n this vehcle is great! IT STILL SHINES!

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